METHODOLOGY AND SPECIFICATIONS GUIDE
M2M-NGL FORWARD CURVES
Latest update: February 2016
INTRODUCTION 2
HOW THIS METHODOLOGY STATEMENT IS ORGANIZED 2
PART I: DATA QUALITY AND MARKET INTELLIGENCE 2
PLATTS MARKET INTELLIGENCE 2
MARKET INSIGHT 2
NGL SOURCE OF DATA 3
PART II: SECURITY AND CONFIDENTIALITY 3
PART III: MARKET ASSESSMENTS 3
PART IV: PLATTS ANALYTICS STANDARDS 3
PART V: CORRECTIONS 3
PART VI: REQUESTS FOR CLARIFICATIONS OF DATA
AND COMPLAINTS 3
www.platts.com
PART VII: QUANTITATIVE FORWARD CURVE
METHODOLOGY 4
GENERAL APPROACH 4
RELATIVE TENORS AND CONTRACT ROLLING 4
PROPANE AT MONT BELVIEU (NON-LST) 5
NORMAL BUTANE AT MONT BELVIEU (NON-LST) 5
ISOBUTANE AT MONT BELVIEU (NON-LST) 5
PURITY ETHANE AT MONT BELVIEU (NON-LST) 5
ETHANE / PROPANE [E/P] MIX AT MONT BELVIEU (NON-LST) 5
NATURAL GASOLINE AT MONT BELVIEU (NON-LST NON-TARGA) 6
PROPANE AT CONWAY 6
NORMAL BUTANE AT CONWAY 6
ISOBUTANE AT CONWAY 6
ETHANE / PROPANE [E/P] MIX CONWAY PIPELINE 6
PROPANE AT MT BELVIEU (LST) 7
NORMAL BUTANE AT MT BELVIEU (LST) 7
ISOBUTANE AT MT BELVIEU (LST) 7
NATURAL GASOLINE AT MT BELVIEU (LST) 7
MONT BELVIEU NON-LST SYMBOL LIST 8
CONWAY AND MONT BELVIEU LST SYMBOL LIST 9
REVISION HISTORY 10
OIL
METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016
INTRODUCTION
Platts’ Quantitative Forward Curve [QFC] methodologies are designed
to quantitatively derive price that are representative of market value,
and of the particular markets to which they relate. QFC Methodology
documents describe the assumptions, the approach and the
methods by which Platts quantitatively derive final price values for
publication.
Platts discloses publicly the days of publication for its Quantitative
Forward Curves, and the times during each trading day in which
Platts considers transactions in determining its QFC. This schedule of
publication is available on Platts’ website, at the following link: http://
www.platts.com/HolidayHome.
The dates of publication are subject to change in the event of outside
circumstances that affect Platts’ ability to adhere to its normal
publication schedule. Such circumstances include network outages,
power failures, acts of terrorism and other situations that result in
an interruption in Platts’ operations at one or more of its worldwide
offices. In the event that any such circumstance occurs, Platts will
endeavor, whenever feasible, to communicate publicly any changes
to its publication schedule and assessment periods, with as much
advance notice as possible.
All Platts methodologies reflect Platts’ commitment to maintaining
best practices in price reporting. Platts’ methodologies have evolved
to reflect changing market conditions through time, and will continue
to evolve as markets change. A revision history, a cumulative
summary of changes to this and previous updates, is included at the
end of the methodology.
How this methodology statement is organized
This description of methodology for quantitatively forward curve is
divided into seven major parts (I-VII) that parallel the entire process of
producing the price values.
■■ Part I describes the input data used for the calculations and the
© 2016 S&P Global Platts, a division of S&P Global. All rights reserved.
Platts Market intelligence contribution to the methodology for the
use of these data to.
■■ Part II describes any security and confidentiality practices that
Platts uses in handling and treating data.
■■ Part III is meant to provide details of the Market Assessment but
this is not applicable to the Quantitative Modeled Forward Curves
because they are not part of our Platts editorial assessments
■■ Part IV explains the process for verifying that published prices
comply with Platts’ standards.
■■ Part V lays out the verification and correction process for revising
published prices and the criteria Platts uses to determine when it
publishes a correction.
■■ Part VI explains how users of Platts QFC can contact Platts
for clarification of data that has been published, or to share a
complaint. It also describes how to find out more about Platts’
complaint policies.
■■ Part VII is a detailed description of the methodology used to
quantitatively model our Platts forward curves. It includes
descriptions of the data used, the historical analysis that supports
the assumption, summary of the assumptions and a general
description of the equations including an example of the QFC.
PART I: DATA QUALITY AND MARKET INTELLIGENCE
Platts market intelligence
Platts “Quantitative Forward Curves” QFC are developed
incorporating Platts’ editorial market knowledge, Platts’ extensive
database of historical price assessments and Platts Analytics
expertise.
2
Natural gas liquids, or NGLs, are valuable products derived from the
processing of natural gas and refining of crude oil. Five major NGLs
– ethane, butane, isobutane, propane and natural gasoline – are
used by petrochemical companies as feedstocks and by refineries
as blending and processing components. Propane is an important
heating fuel. NGLs are actively traded energy commodities with
robust spot markets and growing forward and derivative markets.
NGLs are extracted from natural gas at natural gas processing
plants. When NGLs are extracted from natural gas, the volume and
BTU content of the gas are reduced. That makes NGL processing a
key factor in the supply/demand balance for natural gas. In addition,
some producing regions produce very rich (high-BTU) gas that
must be processed before the gas can be delivered to a pipeline for
transportation to market. In areas where not enough natural gas
processing capacity is available, gas production must be curtailed
down to the available capacity.
Platts tracks NGL production, storage, demand, pricing and other
market factors through a growing suite of market analysis and data
products (http://www.bentekenergy.com/products/ngls/).
The methodology described in this document has been discussed
and reviewed with Platts NGL US editorial team and Platts Analytics
NGL team.
Market Insight
The Platts editorial contribution to the M2M NGL curve modeling
process guaranties the presence, in the model itself, of many
idiosyncrasies and peculiarities of both NGL products and their
respective delivery hubs.
The “exporting capability” of a product can significantly alter its
demand: non–LST Natural Gasoline for example, which is commonly
used as a blending stock for heavier types of crudes, is often sold to
Canada and Colombia and tends to be more in demand because of
this.
METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016
Furthermore, extensive editorial analysis has highlighted
that non-LST prices tend to greatly effect and even lead
prices at Conway.
The upstream infrastructure, as far as NGL pricing is concerned,
is also very important. In fact, it should not go unnoticed
that non-LST products, if needed, can be conveyed into LST
pipelines but not the way round. The enhanced transportation
flexibility that non–LST products can offer inevitably reduces
operational risk rendering this hub particularly of interest to
market participants because it facilitates trading activities. The
analysis of each delivery hub is crucial in order to understand the
commercial interest of market participants for a specific location
and a particular product.
Propane is the most traded contract while non-LST, with the
exception of propane itself, is the most popular delivery hub. The
trading activity registered at Conway is the lowest among the
examined locations and such a trend has been confirmed by Platts
NGL analysts who have expressly highlighted that Conway is more of
a storage facility and its relevance is likely to decrement in the future.
Furthermore, the USA is expanding its role as a key global producer
of NGL products and it has effectively now become a net exporter.
Particularly, the United States are the second largest supplier of
propane for the Chinese market and circa one third of all American
LPG export, namely propane and butane, is entirely delivered in Asia.
Hence, it is reasonable to assume that the progressively leading
role of American NGL export activity around the world, will make the
United States market a global NGL price driver.
NGL Source of Data
The primary sources of data are:
■■ Platts editorial observations and assessments, including spot
assessments and forward curve assessments (when available)
■■ Platts extensive database of commodity historic prices
© 2016 S&P Global Platts, a division of S&P Global. All rights reserved.
■■ Platts editorial commodity market knowledge.
■■ The M2M curves also incorporate data from relevant third party
sources including ICE.
Please refer to our Platts methodology for details on the editorial
assessments: http://www.platts.com/IM.Platts.Content/
MethodologyReferences/MethodologySpecs/Americas-refined-oil-
products-methodology.pdf.
PART II: SECURITY AND CONFIDENTIALITY
Data is stored in a secure network, in accordance with Platts’ policies
and procedures. This means that all data for use in Platts QFC may
be published by Platts Analytics staff while modelling the value of the
markets. Platts does not have confidentiality agreements in place for
information that is sent for use in its QFC.
PART III: MARKET ASSESSMENTS
This section is not applicable to the Quantitative Modeled
Forward Curves because they are not part of our Platts editorial
assessments
PART IV: PLATTS ANALYTICS STANDARDS
All Platts’ employees must adhere to the S&P Global Code of
Business Ethics (COBE), which has to be signed annually. The
COBE reflects S&P Global’s commitment to integrity, honesty
and acting in good faith in all its dealings. In addition, Platts
requires that all employees attest annually that they do not have
any personal relationships or personal financial interests that
may influence or be perceived to influence or interfere with their
ability to perform their jobs in an objective, impartial and effective
manner.
3
Quantitative Analysts are mandated to ensure adherence to
published methodologies as well as internal standards that
require accurate records are kept in order to document their work.
Platts has a Quality & Risk Management (QRM) function that is
independent of the editorial group. QRM is responsible for ensuring
the quality and adherence to Platts’ policies, standards, processes
and procedures. The QRM team conduct regular assessments of
editorial operations, including checks for adherence to published
methodologies.
S&P Global’s internal auditor, an independent group that reports
directly to the parent company’s board of directors, reviews the Platts
risk assessment programs
PART V: CORRECTIONS
Platts is committed to promptly correcting any material errors. When
corrections are made, they are limited to corrections to data that was
available when the index or assessment was calculated.
PART VI: REQUESTS FOR CLARIFICATIONS OF DATA
AND COMPLAINTS
Platts strives to provide critical information of the highest
standards, to facilitate greater transparency and efficiency in
physical commodity markets. Platts customers raise questions
about our methodologies and the approach we take in our price
assessments, proposed methodology changes and other editorial
decisions in relation to our price assessments. These interactions
are strongly valued by Platts and we encourage dialog concerning
any questions a customer or market stakeholder may have.
However, Platts recognizes that occasionally customers may not be
satisfied with responses received or the services provided by Platts
and wish to escalate matters. Full information about how to contact
Platts to request clarification around an assessment, or make a
complaint, is available on our website, at: http://www.platts.com/
ContactUs/Complaints.
METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016

PART VII: QUANTITATIVE FORWARD CURVE METHODOLOGY

This section describes the methodology used to compute the M2M NGL. Platts “Quantitative Forward Curves” QFC are developed incorporating Platts’ editorial market knowledge, Platts’ extensive database of historical
price assessments and Platts Analytics expertise.

General approach

Our Platts NGL forward curves and spot price assessments refer to the physical market and therefore the quantitative M2M curves (M2M QFC) are meant to represent physical markets.

The NGL Futures settlements are the main price drivers of our NGL QFC. However, whilst the Platts curves are based on an EOD valuation, the NGL Futures settlements are computed on a daily average of the
transactions. Therefore, the M2M QFC present a term structure in line with the Futures forward curve but the fronts of the QFC are much closer to the latest Platts assessments.

The following general approach prioritizes higher liquidity markets and maintains the inter market relationships:

■■ M2M Mt.Belvieu non-LST are directly linked to the Futures (Enterprise) because the quality of the curves is supported by presence of good volume.

■■ M2M Conway and Mt.Belvieu LST are linked to Mt.Belvieu non-LST in order to maintain the inter market relationships.

■■ Propane Conway and Propane Mt.Belvieu LST are the only markets derived from the Propane Conway Futures and Propane Mt.Belvieu LST Futures (respectively). In fact, Propane is the only market with good trading
volume in all of the three delivery locations.

■■ Iso-Butane is derived from Butane (in each of the three locations)

Relative tenors and contract rolling

The Platts NGL EDITORIAL ASSESSMENT and M2M QFC are published with relative tenors (Mo01, Mo02, ……, Mo36). Mo01 refers to the current month until two days (not business days) before the end of the month (so for
instance Mo01=September from the 29th of August to the 27th of September and Mo01=October from the 28th of September to the 28th of October).

The NGL Futures instead roll on the second business day of the month (so for instance if the front month is September then the chronological range goes from the 3rd of September until the 2nd of October while if it
happens to be in October it ranges from the 3rd of October until the 2nd of November).

Therefore, there is a contract alignment that is performed every time we use Futures and Platts assessments (historical analysis and current market analysis).

© 2016 S&P Global Platts, a division of S&P Global. All rights reserved. 4
METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016

PROPANE AT MONT BELVIEU (NON-LST) ■■ aily ICE settlements of Butane Futures Mont Belvieu ENT (NBI)
D non-LST Mo02 [Cts/Gal]
forward curve [USD/Gal]
Data used to compute this curve ■■ Historical ICE settlements of Ethane Futures at Mont Belvieu
■■Historical Platts assessments of the Propane Mont Belvieu non-LST Quantitative Forward Curve Modeling Enterprise (ETE) Mo02 [USD/Gal]
Pipe M02 (cents/gallon) We build the curve by extending the 2 first months of Platts forward
curve daily assessed by our editorial team. ■■ Daily ICE settlements Ethane Futures at Mont Belvieu Enterprise
■■ Historical ICE settlements of the Propane Futures at M. Belvieu ENT (ETE) forward curve [Cts/Gal]
(PRN) M02 (USD/gallon) We build a relationship between Butane Mt Belvieu non-LST Mo02
and equivalent tenor of Butane Mt Belvieu non-LST Futures using a ■■ Daily Platts assessments of Purity Ethane Mont Belvieu non-LST
■■ Daily ICE settlements Propane Forward Curve at Mont Belvieu linear regression from the Platts historical assessments and historical (Platts 2-months FWD)
Enterprise (PRN) (USD/gallon) settlements. This linear relationship allows us to build the Butane Mt Belvieu
non-LST forward curve from the Butane Mt Belvieu non-LST Futures. Quantitative Forward Curve Modeling
■■ Daily Platts assessments of Propane Mt Belvieu non-LST EDITORIAL We build the curve by extending the 2 first months of Platts forward
(2-months-curve) ButaneTM2M = α+β×ButaneTFutures (T=3, 2,…, 36) curve daily assessed by our editorial team.

Quantitative Forward Curve Modeling
We build the curve by extending the 2 first months of Platts forward
curve daily assessed by our editorial team.
We build a relationship between Propane Mt Belvieu non-LST Mo02
and equivalent tenor of Propane Mt Belvieu non-LST Futures using a
linear regression from the Platts historical assessments and historical
settlements. This linear relationship allows us to build the Propane Mt Belvieu
non-LST forward curve from the Propane Mt Belvieu non-LST Futures.
We build a relationship between Ethane Mt Belvieu non-LST Mo02
ISOBUTANE AT MONT BELVIEU (NON-LST) and equivalent tenor of Ethane Mt Belvieu non-LST Futures using
a linear regression from the Platts historical assessments and
Data used to compute the curve historical settlements. This linear relationship allows us to build
■■Historical Platts assessments of the spot Isobutane non-LST Mt the Ethane Mt Belvieu non-LST forward curve from the Ethane Mt
Belvieu pipe [Cts/Gal] Belvieu non-LST Futures.
■■ Historical Platts assessments of Butane non-LST Mt Belvieu pipe EthaneTM2M = α+β×EthaneTFutures (T=3, 2,…, 36)
Mo01 [cts/Gal]

PropaneTM2M = α+β×PropaneTFutures (T=3, 2,…, 36) ■■ Daily Platts QFC M2M Normal Butane non-LST Mt Belvieu [cts/gal] ETHANE / PROPANE [E/P] MIX AT MONT BELVIEU (NON-LST)

Quantitative Forward Curve Modeling Data used to compute the curve

NORMAL BUTANE AT MONT BELVIEU (NON-LST) We build a relationship between Platts’ Iso-Butane assessments and Platts ■■Historical Platts assessments of E/P Mix Mont Belvieu non-LST
Butane using a linear regression. This linear relationship allows us to build pipeline Mo02 [Cts/Gal]
Data used to compute the curve the Iso-Butane forward curve from the QFC M2M Butane Mt Belvieu non-LST.
■■Historical Platts assessments of the Normal Butane Mont Belvieu ■■ Historical Platts assessments of Purity Ethane Mont Belvieu non-
non-LST (Mo 02) [Cts/Gal] IsoButaneTM2M = α+β×ButaneTM2M (T=1, 2,…, 36) LST pipeline Mo02 [Cts/Gal]

■■ Historical ICE settlements of the Normal Butane Futures M.Belvieu ■■ Daily Platts EDITORIAL E/P Mix Mont Belvieu non-LST (2 months
ENT (NBI) Mo02 [USD/Gal] PURITY ETHANE AT MONT BELVIEU (NON-LST) EDITORIAL)

■■ Daily Platts assessments of Butane non-LST Mt Belvieu pipe Data used to compute the curve: ■■ Daily M2M NGL Ethane Mt Belvieu non-LST (see chapter 7.4)
EDITORIAL (Platts 2-months-curve) ■■Historical Platts assessments of the Purity Ethane Mont Belvieu

© 2016 S&P Global Platts, a division of S&P Global. All rights reserved. 5
METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016
Quantitative Forward Curve Modeling
We build the curve by extending the 2 first months of Platts forward
curve daily assessed by our editorial team.
We build a relationship between E/P Mix and Purity Ethane using a
linear regression from the Platts historical assessments of Mo02. This
linear relationship allows us to build the E/P Mix forward curve from
the QFC M2M Ethane Mt Belvieu non-LST.
EP_MixTM2M = α+β×EthaneTM2M (T=3,…, 36)
NATURAL GASOLINE AT MONT BELVIEU (NON-LST NON-TARGA)
Data used to compute the curve
■■Historical Platts assessments of Natural Gasoline Mont Belvieu
non-LST non-Targa Mo2 [Cts/Gal]
■■ Historical ICE settlements of Natural Gasoline Futures Mo02 at Mt.
Belvieu ENT (NGE) [USD/Gal]
■■ Daily ICE settlements of Nat. Gasoline Futures at Mt. Belvieu ENT
(NGE) forward curve [USD/Gal]
■■ Daily Platts assessments of Nat. Gasoline Mt Belvieu non-LST non-
Targa (2-mth-FWD) [Cts/Gal]
Quantitative Forward Curve Modeling
We build the curve by extending the 2 first months of Platts forward
curve daily assessed by our editorial team.
We build a relationship between NatGasoline Mt Belvieu non-LST
Mo02 and equivalent tenor of NatGasoline Mt Belvieu non-LST Futures
using a linear regression from the Platts historical assessments and
historical settlements. This linear relationship allows us to build the
NatGasoline Mt Belvieu non-LST forward curve from the NatGasoline
Mt Belvieu non-LST Futures.
NatGasolineTM2M= α+β×NatGasolineTFutures (T=3, 2,…, 36)
© 2016 S&P Global Platts, a division of S&P Global. All rights reserved.
PROPANE AT CONWAY
Data used to compute this curve
■■Historical Platts assessments of Propane Conway spot prices (cts/gallon)
■■ Historical settlements of ICE Propane Conway Futures Mo01 (PRC)
($/gallon)
■■ Propane Mont Belvieu non-LST Pipe M01
■■ Daily ICE settlements of Propane (PRC) Futures forward curve
■■ M2M Propane at Mont Belvieu (non-LST) 7.3
Quantitative Forward Curve Modeling
Whilst there is not Propane Conway forward curve assessed by the
Platts editorial team, the latter assesses the spot price of this market.
We build a relationship between Propane Conway spot and front
month of Propane Conway Futures using a linear regression from
the Platts historical assessments and historical settlements. This
linear relationship allows us to build the Propane Conway forward
curve from the Propane Conway Futures. Below is an example of the
forward curve obtained.
This curve progressively adjusts its spread to the M2M Propane non-
LST to a constant value, equal to the spread between Propane Mont
Belvieu non-LST Pipe M01 and Propane Conway spot.
PropaneTM2M = α+β×PropaneTFutures (T=1, 2,…, 36)
NORMAL BUTANE AT CONWAY
Data used to compute this curve
■■ Historical Platts spot price assessments of Butane at Conway (cts/gallon)
■■ Historical Platts spot price assessments of Butane non-LST Mt
Belvieu pipe Mo01 (cts/gal)
6
■■ M2M Butane non-LST Mt Belvieu (see chapter 7.4)
Quantitative Forward Curve Modeling
Whilst there is not Normal Butane Conway forward curve assessed by the
Platts editorial team, the latter assesses the spot price of this market.
We build a relationship between Butane Conway and Butane Mt
Belvieu non-LST using a linear regression from the Platts historical
assessments. This linear relationship allows us to build the Butane
Conway forward curve from the QFC M2M Butane Mt Belvieu non-LST.
ButaneConwayTM2M= α+β×ButaneMtBelvieuTM2M (T=1, 2,…, 36)
ISOBUTANE AT CONWAY
Data used to compute this curve
■■Historical Platts spot price assessments of Iso-Butane Conway (cts/gallon)
■■ Historical Platts spot price assessments of Butane Conway (cts/gallon)
■■ M2M QFC Butane Conway (see chapter 7.10)
Quantitative Forward Curve Modeling
Whilst there is not Iso Butane Conway forward curve assessed by the
Platts editorial team, the latter assesses the spot price of this market.
We build a relationship between Butane Conway and ISO-Butane
Conway using a linear regression from the Platts historical
assessments. This linear relationship allows us to build the ISO-
Butane Conway forward curve from the QFC M2M Butane Conway.
ISOButaneConwayTM2M= α+β×ButaneConwayTM2M (T=1, 2,…, 36)
ETHANE / PROPANE [E/P] MIX CONWAY PIPELINE
Data used to compute this curve
■■Historical Platts assessments of E/P Mix Conway spot prices (cts/gallon)
METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016
■■ Historical Platts assessments of /P Mix non-LST Mt Belvieu pipe
Mo01 (cents/gallon)
■■ M2M QFC E/P Mix Mt Belvieu non-LST (see paragraph 7.7)
Quantitative Forward Curve Modeling
Whilst there is not E/P Mix Conway forward curve assessed by the
Platts editorial team, the latter assesses the spot price of this market
We build a relationship between E/P Mix Conway and E/P Mix non-
LST Mt Belvieu using a linear regression from the Platts historical
assessments. This linear relationship allows us to build the E/P
Mix Conway forward curve from the QFC M2M E/P Mix non-LST Mt
Belvieu. Below is an example of the forward curve obtained.
EPMixConwayTM2M = α+β×EPMixMtBelvieuTM2M (T=1, 2,…, 36)
PROPANE AT MT BELVIEU (LST)
Data used to compute this curve
■■Daily ICE settlements of Propane Mt Belvieu LST Futures (PRL) (cts/
gal)
■■ Daily ICE settlements of Propane Mt Belvieu non–LST Futures (PRN)
(cts/gal)
■■ Daily Platts editorial assessment of Propane Mt Belvieu LST
(2-months) FWD curve
■■ Daily M2M NGL Propane at Mont Belvieu (non-LST) (see paragraph 7.3)
Quantitative Forward Curve Modeling
Platts’ editorial team assesses Mo01 and Mo02 of the Propane Mont
Belvieu LST and the QFC starts from month #3 reporting the first 2
Fwd month as editorially assessed.
We build a relationship between Propane Mt Belvieu LST Mo02 and
equivalent tenor of Propane Mt Belvieu LST Futures using a linear
© 2016 S&P Global Platts, a division of S&P Global. All rights reserved.
regression from the Platts historical assessments and historical
settlements. This linear relationship allows us to build the Propane Mt
Belvieu LST forward curve from the Propane Mt Belvieu LST Futures.
PropaneTM2M = α+β×PropaneTFutures (T=3, 2,…, 36)
NORMAL BUTANE AT MT BELVIEU (LST)
Data used to compute this curve
■■ Daily Platts spot assessments of Butane LST Mt Belvieu pipe
■■ Daily Platts assessments of Butane non-LST Mt Belvieu pipe Mo01
■■ M2M NGL Normal Butane at Mont Belvieu (non-LST) (see
paragraph 7.4)
Quantitative Forward Curve Modeling
Whilst there is not Butane Mont Belvieu LST forward curve assessed
by the Platts editorial team, the latter assesses the spot price of this
market.
We build a relationship between Butane LST Mt Belvieu pipe and
Butane non-LST Mt Belvieu pipe Mo01 using a linear regression from
the Platts historical assessments. This linear relationship allows us
to build the Butane LST forward curve from the QFC M2M Butane Mt
Belvieu non-LST. Below is an example of the forward curve obtained.
ButaneLSTTPlatts=α+β×Butane_nonLSTTM2M (T=1, 2,…, 36)
ISOBUTANE AT MT BELVIEU (LST)
Data used to compute this curve:
■■ Historical Platts spot price assessments of Butane at LST Belvieu
pipe (cents/gallon)
■■ Historical Platts spot price assessments of ISO Butane LST Mt
Belvieu pipe
7
■■ M2M NGL Normal Butane at Mt Belvieu (LST) (see paragraph 7.14)
Quantitative Forward Curve Modeling
Whilst there is no Platts’ assessment for the Iso-Butane Mont Belvieu
LST forward curve, its editorial team assesses the spot price of this
market.
We build a relationship between Butane Mt Belvieu LST and ISO Butane
Mt Belvieu LST using a linear regression from the Platts historical
assessments. This linear relationship allows us to build the ISO-Butane
LST forward curve from the QFC M2M Butane Mt Belvieu LST.
ISOButaneLSTTM2M = α+β×ButaneLSTTM2M (T=1, 2,…, 36)
NATURAL GASOLINE AT MT BELVIEU (LST)
Data used to compute this curve
■■ Historical Platts spot price assessments of Natural Gasoline LST
FOB Mt Belvieu pipe (cts/gal)
■■ istorical Platts price assessments of Natural Gasoline non-LST
H
non-Targa Mt B. Mo01 (cts/gal)
■■ aily M2M NGL Natural Gasoline at Mont Belvieu (non-LST non-
D
Targa) (see paragraph 7.8)
Quantitative Forward Curve Modeling
Whilst there is not Natural Gasoline Mont Belvieu LST forward curve
assessed by the Platts editorial team, the latter assess the spot price
of this market.
We build a relationship between Natural Gasoline LST and Natural
Gasoline non-LST non-Targa Mo01 using a linear regression from
the Platts historical assessments. This linear relationship allows us
to build the Natural Gasoline LST forward curve from the QFC M2M
Natural Gasoline non-LST non-Targa.
NatGasolineLSTTM2M=α+β×NaGasoline_nonLSTTM2M (T=1, 2,…, 36)
METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016

MONT BELVIEU NON-LST SYMBOL LIST

  Purity Ethane non-LST Mt Belvieu Butane non-LST Mt Belvieu Propane non-LST Mt Belvieu Iso-Butane non-LST Mt Belvieu Natural Gasoline non-LST non-Targa Mt Belvieu E-P Mix Non-LST Mont Belvieu
Mo01 QETEP01 QNBIP01 QPRNP01 QISOP01 QNGEP01 QECBP01
Mo02 QETEP02 QNBIP02 QPRNP02 QISOP02 QNGEP02 QECBP02
Mo03 QETEP03 QNBIP03 QPRNP03 QISOP03 QNGEP03 QECBP03
Mo04 QETEP04 QNBIP04 QPRNP04 QISOP04 QNGEP04 QECBP04
Mo05 QETEP05 QNBIP05 QPRNP05 QISOP05 QNGEP05 QECBP05
Mo06 QETEP06 QNBIP06 QPRNP06 QISOP06 QNGEP06 QECBP06
Mo07 QETEP07 QNBIP07 QPRNP07 QISOP07 QNGEP07 QECBP07
Mo08 QETEP08 QNBIP08 QPRNP08 QISOP08 QNGEP08 QECBP08
Mo09 QETEP09 QNBIP09 QPRNP09 QISOP09 QNGEP09 QECBP09
Mo10 QETEP10 QNBIP10 QPRNP10 QISOP10 QNGEP10 QECBP10
Mo11 QETEP11 QNBIP11 QPRNP11 QISOP11 QNGEP11 QECBP11
Mo12 QETEP12 QNBIP12 QPRNP12 QISOP12 QNGEP12 QECBP12
Mo13 QETEP13 QNBIP13 QPRNP13 QISOP13 QNGEP13 QECBP13
Mo14 QETEP14 QNBIP14 QPRNP14 QISOP14 QNGEP14 QECBP14
Mo15 QETEP15 QNBIP15 QPRNP15 QISOP15 QNGEP15 QECBP15
Mo16 QETEP16 QNBIP16 QPRNP16 QISOP16 QNGEP16 QECBP16
Mo17 QETEP17 QNBIP17 QPRNP17 QISOP17 QNGEP17 QECBP17
Mo18 QETEP18 QNBIP18 QPRNP18 QISOP18 QNGEP18 QECBP18
Mo19 QETEP19 QNBIP19 QPRNP19 QISOP19 QNGEP19 QECBP19
Mo20 QETEP20 QNBIP20 QPRNP20 QISOP20 QNGEP20 QECBP20
Mo21 QETEP21 QNBIP21 QPRNP21 QISOP21 QNGEP21 QECBP21
Mo22 QETEP22 QNBIP22 QPRNP22 QISOP22 QNGEP22 QECBP22
Mo23 QETEP23 QNBIP23 QPRNP23 QISOP23 QNGEP23 QECBP23
Mo24 QETEP24 QNBIP24 QPRNP24 QISOP24 QNGEP24 QECBP24
Mo25 QETEP25 QNBIP25 QPRNP25 QISOP25 QNGEP25 QECBP25
Mo26 QETEP26 QNBIP26 QPRNP26 QISOP26 QNGEP26 QECBP26
Mo27 QETEP27 QNBIP27 QPRNP27 QISOP27 QNGEP27 QECBP27
Mo28 QETEP28 QNBIP28 QPRNP28 QISOP28 QNGEP28 QECBP28
Mo29 QETEP29 QNBIP29 QPRNP29 QISOP29 QNGEP29 QECBP29
Mo30 QETEP30 QNBIP30 QPRNP30 QISOP30 QNGEP30 QECBP30
Mo31 QETEP31 QNBIP31 QPRNP31 QISOP31 QNGEP31 QECBP31
Mo32 QETEP32 QNBIP32 QPRNP32 QISOP32 QNGEP32 QECBP32
Mo33 QETEP33 QNBIP33 QPRNP33 QISOP33 QNGEP33 QECBP33
Mo34 QETEP34 QNBIP34 QPRNP34 QISOP34 QNGEP34 QECBP34
Mo35 QETEP35 QNBIP35 QPRNP35 QISOP35 QNGEP35 QECBP35
Mo36 QETEP36 QNBIP36 QPRNP36 QISOP36 QNGEP36 QECBP36

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CONWAY AND MONT BELVIEU LST SYMBOL LIST

  Propane LST Mt Belvieu Butane LST Mont Belvieu Iso-Butane LST Mont Belvieu Natural Gasoline LST Mont Belvieu Propane Conway Butane Conway Iso-Butane Conway E/P Mix Conway
Mo01 QPRLP01 QNBRP01 QISLP01 QNGLP01 QPRCP01 QIBCP01 QISCP01 QECCP01
Mo02 QPRLP02 QNBRP02 QISLP02 QNGLP02 QPRCP02 QIBCP02 QISCP02 QECCP02
Mo03 QPRLP03 QNBRP03 QISLP03 QNGLP03 QPRCP03 QIBCP03 QISCP03 QECCP03
Mo04 QPRLP04 QNBRP04 QISLP04 QNGLP04 QPRCP04 QIBCP04 QISCP04 QECCP04
Mo05 QPRLP05 QNBRP05 QISLP05 QNGLP05 QPRCP05 QIBCP05 QISCP05 QECCP05
Mo06 QPRLP06 QNBRP06 QISLP06 QNGLP06 QPRCP06 QIBCP06 QISCP06 QECCP06
Mo07 QPRLP07 QNBRP07 QISLP07 QNGLP07 QPRCP07 QIBCP07 QISCP07 QECCP07
Mo08 QPRLP08 QNBRP08 QISLP08 QNGLP08 QPRCP08 QIBCP08 QISCP08 QECCP08
Mo09 QPRLP09 QNBRP09 QISLP09 QNGLP09 QPRCP09 QIBCP09 QISCP09 QECCP09
Mo10 QPRLP10 QNBRP10 QISLP10 QNGLP10 QPRCP10 QIBCP10 QISCP10 QECCP10
Mo11 QPRLP11 QNBRP11 QISLP11 QNGLP11 QPRCP11 QIBCP11 QISCP11 QECCP11
Mo12 QPRLP12 QNBRP12 QISLP12 QNGLP12 QPRCP12 QIBCP12 QISCP12 QECCP12
Mo13 QPRLP13 QNBRP13 QISLP13 QNGLP13 QPRCP13 QIBCP13 QISCP13 QECCP13
Mo14 QPRLP14 QNBRP14 QISLP14 QNGLP14 QPRCP14 QIBCP14 QISCP14 QECCP14
Mo15 QPRLP15 QNBRP15 QISLP15 QNGLP15 QPRCP15 QIBCP15 QISCP15 QECCP15
Mo16 QPRLP16 QNBRP16 QISLP16 QNGLP16 QPRCP16 QIBCP16 QISCP16 QECCP16
Mo17 QPRLP17 QNBRP17 QISLP17 QNGLP17 QPRCP17 QIBCP17 QISCP17 QECCP17
Mo18 QPRLP18 QNBRP18 QISLP18 QNGLP18 QPRCP18 QIBCP18 QISCP18 QECCP18
Mo19 QPRLP19 QNBRP19 QISLP19 QNGLP19 QPRCP19 QIBCP19 QISCP19 QECCP19
Mo20 QPRLP20 QNBRP20 QISLP20 QNGLP20 QPRCP20 QIBCP20 QISCP20 QECCP20
Mo21 QPRLP21 QNBRP21 QISLP21 QNGLP21 QPRCP21 QIBCP21 QISCP21 QECCP21
Mo22 QPRLP22 QNBRP22 QISLP22 QNGLP22 QPRCP22 QIBCP22 QISCP22 QECCP22
Mo23 QPRLP23 QNBRP23 QISLP23 QNGLP23 QPRCP23 QIBCP23 QISCP23 QECCP23
Mo24 QPRLP24 QNBRP24 QISLP24 QNGLP24 QPRCP24 QIBCP24 QISCP24 QECCP24
Mo25 QPRLP25 QNBRP25 QISLP25 QNGLP25 QPRCP25 QIBCP25 QISCP25 QECCP25
Mo26 QPRLP26 QNBRP26 QISLP26 QNGLP26 QPRCP26 QIBCP26 QISCP26 QECCP26
Mo27 QPRLP27 QNBRP27 QISLP27 QNGLP27 QPRCP27 QIBCP27 QISCP27 QECCP27
Mo28 QPRLP28 QNBRP28 QISLP28 QNGLP28 QPRCP28 QIBCP28 QISCP28 QECCP28
Mo29 QPRLP29 QNBRP29 QISLP29 QNGLP29 QPRCP29 QIBCP29 QISCP29 QECCP29
Mo30 QPRLP30 QNBRP30 QISLP30 QNGLP30 QPRCP30 QIBCP30 QISCP30 QECCP30
Mo31 QPRLP31 QNBRP31 QISLP31 QNGLP31 QPRCP31 QIBCP31 QISCP31 QECCP31
Mo32 QPRLP32 QNBRP32 QISLP32 QNGLP32 QPRCP32 QIBCP32 QISCP32 QECCP32
Mo33 QPRLP33 QNBRP33 QISLP33 QNGLP33 QPRCP33 QIBCP33 QISCP33 QECCP33
Mo34 QPRLP34 QNBRP34 QISLP34 QNGLP34 QPRCP34 QIBCP34 QISCP34 QECCP34
Mo35 QPRLP35 QNBRP35 QISLP35 QNGLP35 QPRCP35 QIBCP35 QISCP35 QECCP35
Mo36 QPRLP36 QNBRP36 QISLP36 QNGLP36 QPRCP36 QIBCP36 QISCP36 QECCP36

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METHODOLOGY AND SPECIFICATIONS GUIDE M2M-NGL FORWARD CURVES: FEBRUARY 2016

REVISION HISTORY

February 2016: Alignment to Platts standard documentation.

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